Nissan Essay Example | Topics and Well Written Essays - 4250 words

Nissan - Essay Example The Company is also engaged in manufacture and supply of automobile parts. Its overseas market includes Europe, North America, Africa, New Zealand, and China. Nissan established an alliance with Renault SA in 1999 in order to resolve its financial difficulty. Renault SA is a French automobile manufacturer, who was looking to expand its brand into other world markets. The alliance was designed to achieve profitable and balanced growth for both the partners through the creation of a bi-national group. Nissan has been working to address global environmental issues that have caused increasing concern over recent years. Renault has been expanding its activities into other world markets by improving core competencies; it is argued that if Renault had not found a partner, it could have found survival difficult when faced with global competition (Autozine, 2002b).The RNA is an agreement concerning a global alliance aimed at "achieving profitable growth for both companies". Both companies have interest of cross shareholding, so they joined alliance for manufacturing facility. Renaults stake in Nissan is a stake in its performance, and vice versa, which immediately moves the alliance away from the likes of Rover-Honda, where no such arrangement existed. The Alliance develops and implements a strategy of profitable growth and sets itself the following three objectives: The Renault-Nissan Alliance is ranked among the worlds leading five automakers. This alliance mainly includes five brands: Nissan and Infiniti for the Nissan group and Renault, Dacia and Samsung for the Renault group. As s result of the synergies generated by the alliance, Renault and Nissan assert their ambitions for future developments. (Nissan). Q.1) In the April-to-December, 2008 period, net revenue fell 14.7% to 6.6858 trillion yen. Operating profit totalled 92.5 billion yen, down 84.0%. Operating profit margin came to